AMUNDI DISRUPTIVE COMPANIES MIXED FUND OF FUNDS
With a mixed portfolio, you can benefit from the profits of companies shaping the future
Disruption means new solutions that are simpler, cheaper, more sustainable or faster than their predecessors and which reshape their own markets or users’ behaviour.
Disruptive companies radically rewrite the rules in their sectors, creating new markets or thoroughly transforming the existing ones.
They dismantle existing structures and finally take a leading role. The Amundi Disruptive Companies Mixed Fund of Funds offers you the opportunity to share in this growth and to do so at a level of risk below that of equity funds. The Fund aims to maximise its yield within the recommended timeframe of at least three years through extensive diversification and active asset allocation, with medium risk.
The Fund Manager achieves this goal primarily through investment funds, creating for the fund a portfolio in which the investment units of investment funds represent at least 80% and maintaining its focus on multiple asset classes and regions. Its remarkably wide spectrum of investments ranges from domestic and overseas money market and bond market investments to equity market instruments.
In line with the targeted level of medium risk, the portfolio is characterised by a significant weighting towards bond market investments. Via its bond market investments, the fund follows a flexible strategy that is relatively unrestricted regarding timeframes and target markets, investing mostly through collective investment trusts. The fund’s equity market investments are focused on the companies shaping tomorrow’s world and the technologies of the future. Beyond the above, the fund does not have any predefined geographical or industry focal points; in fact, the investment strategy aims at targeting a variety of asset classes and regions, and hence it does not have a reference index. The investment funds used are the domestic and international investment funds of Amundi Group.
In addition to collective investment trusts, the fund may include in its portfolio individual investment instruments (for example Hungarian government securities and money market instruments to improve liquidity: Treasury bills, government bonds and bank deposits).
While it took telephony 75 years to reach 50 million people, Instagram needed only six months and Pokemon Go a mere 19 days to achieve the same.
Disruption has been shaping people’s lives for centuries. But what we are witnessing today is the fastest rate of change ever. This change is driven by trends that constitute the foundations of our society and determine the development of the economy of the future: technological progress, globalisation, demographic changes and environmental challenges.
CPR Invest – Global Disruptive Opportunities
The Fund will leverage the performance of companies shaping the future, capturing disruption primarily by investing in the CPR Invest – Global Disruptive Opportunities fund.
Disruption may be present in all sectors of the economy. The investment universe of the CPR Invest Global Disruptive Opportunities Fund selects from the widest range of sectors in order to enable it to best convey the growth potential inherent in disruption.2
The fund concentrates on four dimensions in its effort to exploit this phenomenon, one that is reshaping a variety of industries:
- Digital economy (cloud-based technologies, Big Data, virtual reality etc.)
- Industry 4.0 (artificial intelligence, smart factories, robotics etc.),
- Preventive and curative health care (immune therapy, gene therapy, biotechnology etc.)
- The future of our planet (smart network, energy efficiency and storage, green energy production etc.)
For the sake of completeness and diversification, the investment universe includes companies that trigger change as well as ones that are able to adapt well to changes in their sectors.3
The CPR Invest – Global Disruptive Opportunities fund is managed by CPR Asset Management. CPR AM is a fully owned subsidiary of Amundi Asset Management4. Its wide-ranging expertise (equities, convertible bonds, interest-bearing securities, asset allocation products) serve the purpose of offering flexible, efficient and dynamic investment solutions meeting the needs of our clients. As of the end of December 2018, the total assets managed by CPR AM were in excess of EUR 47 billion.5
- Loss of capital: There is no capital or yield guarantee or promised capital or yield protection with regard to the Fund.
- Price fluctuation: The net asset value of the Fund may vary significantly due to the potential composition of the assets or the applicable management technique. Despite its mixed composition, there may be years or periods when the performance of the Fund is lower than the yield of the markets of which it is composed or the yield of government securities.
- Market risk: A risk arising from changes in the price of the assets included in the portfolio of the Fund (primarily equity and bond market instruments). There is no guarantee that individual countries, markets or industries will perform as expected, therefore it may happen that the assets of the Fund fall to a value less than their value at the time of purchase; also be aware of the risks of emerging market instruments and instruments investing in new technologies and low-capitalisation instruments.
- Exchange rate risk: The Fund invests in foreign instruments as well and, due to the volatility of foreign exchange rates, risks originating from open currency positions may arise (the Fund Manager does not necessarily conclude hedge transactions), and changes between the exchange rates of the different currencies may affect the Fund adversely.
- Derivative instrument risk: The Fund and its underlying funds may also cover option, forward and other derivative contracts. By their nature, derivative transactions represent increased risk. These risks may be mitigated with appropriate investment techniques but cannot be excluded completely. Due to the nature of derivative contracts, a number of uncertainty factors may arise in these transactions.
- Counterparty risk: This is the risk assumed by the Fund Manager when selecting its business partners (banks, custodians, brokerage firms) and entering into contracts with them. The Fund Manager employs a strict counterparty screening process to manage its counterparty risk.
- Liquidity risk: The liquidity of the investment instruments in the portfolio may be low on a particular market, i.e. it may be relatively difficult to find a buyer/seller.
For further information and to find out more about the potential risks, please read the official Management Rules of the Fund, as approved by the National Bank of Hungary (hereinafter: Supervisory Authority) and as amended from time to time, and its Key Investor Information Document (KIID). Before making your investment decision, please review these documents to understand all the potential risks of the Fund
This Fund is managed by Amundi Alapkezelő Zrt. (hereinafter: “Fund Manager”), license Nos.: III/100.001-5/2002., and III/100.001-6/2003., H-EN-III-1120/2012., and H-EN-III-136/2014. The investment units of the Fund are distributed by UniCredit Bank Hungary Zrt. (hereinafter: “Distributor”), license No.: I-1523/2003., a member of the Budapest Stock Exchange.
This information qualifies as commercial communication according to Act CXX of 2001 on the Capital Market and Act XVI of 2014 on Collective Investment Trusts and Their Managers, and on the Amendment of Financial Regulations, and as marketing communication according to Act CXXXVIII of 2007 on Investment Firms and Commodity Dealers, and on the Regulations Governing their Activities.
This commercial communication does not provide comprehensive information about the Fund or the distribution conditions, it does not qualify as an offer, investment advice or recommendation.
Before making your investment decision, please consider the object, risks and fees of this investment as well as any potential losses from such an investment. Accordingly, please read carefully the effective official Prospectus and Management Rules of this Fund and Key Investor Information Document (KIID), as approved by the National Bank of Hungary (hereinafter: “Regulatory Authority”), which are available on the websites of the Fund Manager (www.amundi.hu) and the Distributor (www.unicreditbank.hu) and the www.kozzetetelek.hu website operated by the Regulatory Authority (hereinafter jointly: Places of Publication). Prior to making an investment, please also read the Distributor’s prevailing List of Conditions and Business Terms, which state the conditions, as amended from time to time, for the distribution of the investment units as well as the distribution and redemption fees; these documents are available at the places of distribution and on the Distributor’s website. On behalf of the Fund, the Fund Manager must satisfy the obligation of regular reporting on the Fund by publishing annual and semi-annual reports and the monthly portfolio reports accessible at the Places of Publication.
Please note that yields from the investment and the original investment value will fluctuate, i.e. if investors sell investment units, these may be worth more or less than the amount paid for their original purchase. The past yields of the funds do no constitute a guarantee for the future performance of the funds.
This document does not include a comprehensive discussion of the tax implications of buying, holding or selling the investment units in the Fund, nor does it qualify as advice on taxation law. Please consult a tax advisor or expert regarding the tax considerations for your investment decision.
Amundi Alapkezelő Zrt., a member of Amundi Group / Registered office: 1011 Budapest, Fő u. 14. III., Tel: +36 1 577 4200 / E-mail: www.amundi.hu, www.kozzetetelek.hu / Information about the Distributor: www.unicreditbank.hu
1This is a set of corporate equities that match our investment policy and are monitored by the portfolio managers to see if it is worth buying them for the fund’s portfolio.
2 Naturally, not all sectors are included in the portfolio at all times and investment in a particular sector does not guarantee that investors will benefit fully from the sector’s performance.
3 Our sub-fund aims to focus on disruptive firms and their performance, so its performance may significantly deviate from the indices which typically reflect the performance of the global equity markets (e.g. MSCI World). Diversification does not guarantee profit nor does it protect against loss.
4The asset management company Amundi Asset Management SAS (90 Boulevard Pasteur -75015 Paris- France - 437 574 452 RCS Paris. - www.amundi.com) is supervised by the French securities market authority (Autorité des Marchés Financiers – “AMF”), licence number: GPM 04000036, subscribed capital: EUR 746,262,615. The asset management company CPR AM (90 Boulevard Pasteur, 75015 Paris - France – 399 392 141 RCS Paris, www.cpr-am.com) operates under licence from the AMF, licence number: GP 01-056, subscribed capital: EUR 53,445,705.
5Source: CPR AM disclosure.